Monday, July 04, 2005

Louis Navellier on oil.

In a hotline last week, Navellier added: "Well, the stock market is in a profit-taking mood now and the latest excuse for this profit taking is the fact that oil prices briefly hit $60 per barrel on Thursday.

"These high oil prices are obviously very exciting for our energy stocks and I expect to profit immensely from this, especially when those energy stocks release their second quarter earnings results from mid-July through early August. So don't worry about the price of oil even though the market is worried about it. In truth, that was just an excuse to take profits.

"The oil situation is very simple. Oil inventories are always depleted in the summer after building in the spring. They'll build again in the fall and then be depleted in the winter. The fact that the futures traders overreact to the weekly inventory numbers is amazing to me. Oil inventories are much higher than they normally are. Prices shouldn't be this high, but many commodity traders are manic and like to jerk the market around."